AirAsia to disrupt global travel as the world’s first low-cost narrow-body network carrier with landmark agreement for 70 A321XLRs

Photo Caption: Prime Minister of Malaysia YAB Dato’ Seri Anwar Ibrahim witnessed the signing of the Memorandum of Understanding between Capital A CEO Tony Fernandes and Christian Scherer, CEO Commercial Aircraft, Airbus, in Paris today, alongside several Malaysian Cabinet Ministers.

A historic contract of USD 12.25 billion was signed between AirAsia Berhad, a fully-owned subsidiary of Capital A Berhad, and Airbus for 50 A321XLRs with rights for 20 A321XLRs.  This deal is a significant milestone for the airline, which is based on its multi-hub strategy, to become the first low-cost narrow-body network carrier in the world.  The aircraft are expected to be delivered between 2028 and 2032.

Tony Fernandes, CEO of Capital A, and Christian Scherer, CEO of Airbus Commercial Aircraft, signed the deal today in Paris in front of Malaysian Prime Minister YAB Dato’ Seri Anwar Ibrahim.

“We pioneered low-cost travel in Asia – now, we are taking it to the next level. AirAsia is on a transformative journey to become the world’s first low-cost network carrier. This is about exponential growth, connecting geographies beyond Asean, and making flying even more democratic. We gave people in Asean the opportunity to explore Asia – now we want the world to see Asean, and Asean to see the world. The A321XLR and A321LR are the game-changers enabling this vision, and we are proud to lead the charge in making our world smaller. We can’t wait to paint the skies even wider in red.” ~Tony Fernandes, CEO of Capital A and Advisor & Steward of AirAsia Group

The next-generation A321XLRs will fly alongside AirAsia's all-Airbus fleet of A320 Family and A330 aircraft, bolstering the airline's long-term goal of providing unparalleled connectivity throughout Asia and beyond while preserving a low cost model through better fleet efficiency, improved route economics, and increased aircraft utilization.  In order to reach a total of 1.5 billion passengers since its founding, the AirAsia Group hopes to transport 150 million passengers a year by 2030.

“We are pleased to confirm this agreement, as AirAsia Group begins its next development chapter. Having resumed its growth trajectory, which we salute and support, the airline is creating solid fleet efficiencies, allowing global network expansion. The A321XLR unlocks new opportunities for AirAsia to launch non-stop flights linking primary and secondary cities all around the globe.” ~Christian Scherer, CEO Commercial Aircraft at Airbus

An important part of this change is the new fleet.  Through its multi-aircraft strategy, AirAsia can lower fuel usage, balance capacity with demand, and maintain a cost-effective, sustainable growth model in a highly competitive global market.  Additionally, the A321XLR has a 20% lower fuel consumption per seat than the Airbus A321neo, which greatly enhances operating economy and emissions performance.

About AirAsia Philippines

AirAsia is a leading low-cost carrier with licenses to operate in five Asean countries—Malaysia, Thailand, Indonesia, the Philippines, and Cambodia. Founded in 2001, AirAsia has stayed true to its purpose and tagline "Now Everyone Can Fly". The airline has made flying affordable and accessible to over 800 million guests, connecting people and communities across more than 130 destinations. Today, as one of the largest airlines in the region, AirAsia is expanding to become the world's first global low cost network carrier. It operates more than 200 aircraft and holds a significant orderbook for the next decade. AirAsia leads in sustainable aviation with green initiatives and a net zero target by 2050. In 2023, it avoided 130,000 tonnes of CO2 emissions from its narrowbody regional network through 20+ efficiency measures, saving US$40 million in fuel and over US$388,000 in shadow carbon costs.